June 2024 | SSAB announced that the Science Based Targets initiative (SBTi) has approved its updated climate goals. This approval confirms that SSAB’s near- and long-term carbon emissions reduction targets are scientifically grounded and align with SBTi’s stringent requirements to limit global warming to 1.5°C.
SSAB validated long-term goal aims for net-zero greenhouse gas emissions across Scope 1, Scope 2, and Scope 3 by 2045. The updated near-term target aims for a 48 percent reduction in greenhouse gas emissions across Scope 1, Scope 2, and parts of Scope 3 by 2033, using 2018 as the base year. This marks an increase in ambition from SSAB’s previously validated goal of a 35 percent reduction in Scope 1 and Scope 2 emissions by 2032.
Strategic Transformation
With this approval, SSAB is one of the first steel companies globally to receive validated decarbonization targets according to the SBTi’s steel sector guidance released in 2023. The updated targets include for the first time Scope 3 emissions, that is indirect emissions resulting from activities in the supply chain. The targets build on SSAB’s overall strategy to transform the Nordic blast furnace-based production system into fossil-free mini-mills in around 2030, thereby largely eliminating CO2 emissions from the company operations (Scope 1 and 2).
“Updating and validating our climate targets are important to ensure we’re aligned with the latest climate science and doing our part to limit global temperature increases. With our Nordic transformation, we are largely eliminating CO2 emissions from our own steelmaking process. Simultaneously, we are working with our suppliers and customers to cut indirect greenhouse gas emissions from all parts of the value chain,” says Christina Friborg, Executive Vice President and Head of Sustainability at SSAB.
About Science Based Targets initiative
SBTi is an organization that encourages companies to set science-based targets that increase their competitiveness in the transition to a low-emission society. The targets define how much and how quickly a business must reduce its emissions to be in line with the Paris Agreement goals. This currently includes limiting global warming to 1.5°C, which is a higher bar compared with the organisation’s previous minimum level of ‘’well below 2°C” for the steel sector.
Eligible companies must set emissions reduction targets for three categories called Scope 1, 2 and 3. Scope 1 covers direct emissions resulting from a company’s own operations, for example fossil fuel combustion. Scope 2 covers indirect emissions from purchased energy (mainly electricity), and Scope 3 covers other indirect emissions resulting from activities in the value chain, for example the production of raw material, transportation and processing of sold products.
SSAB Transformation Efforts
SSAB is in the process of replacing its Nordic blast furnace-based production system with state-of-the-art mini-mill technology and electric arc furnaces that run on fossil-free electricity.
Once completed, the transformation will eliminate about 10 percent of Sweden’s and 7 percent of Finland’s total CO2 emissions.
